True (t) or False (f) ______ The IRS does not require the taxpayer to use the same depreciation method on the tax return that is used in preparing financial statements.

Q: PLR 200243002 What year was this PLR issued? What was the tax issue on which the taxpayer…

A: Definition of IRSPLR200243002 is for Internal Revenue Service. IRS stands for Internal Revenue…

Q: The object of distraint may either be personal and/or real properties of a delinquent taxpayer

A: Delinquent taxpayers are those taxpayers who did not pay the amount of taxes due till the deadlines.…

Q: 1. Which of the following is TRUE? a. When the tax law is vague or ambiguous, it is to be…

A: Tax is a value which is charged by a country's government or authority on the income sources of the…

Q: Which of the following is an example of a temporary difference which would result in a deferred tax…

A: Solution: Rent revenue collected in advance included in taxable income before it is included in…

Q: 1st statement – Tax exemptions are strictly construed against the government. 2nd Statement - When…

A: only statement second is correct, because whenever there is doubt regarding the taxability of an…

Q: Income is taxable, unless specifically included in the IRS.  What are some examples of tax…

A: Taxable income is the measurement of income which is used to calculate the amount of tax that needs…

Q: an item is excluded from income taxation, it would follow that the same is likewise exempt from…

A: Ans. In regard to tax laws various tax treatments are made while calculating tax liability.

Q: Which of the following refunds is not subject to income tax a, Local tax expense b.Special…

A: Answer: Th refund which is not subject to income tax are those amount for which earlier deduction…

Q: Which of the following statements best describes the purpose of the Taxpayer Bill of Rights? a.To…

A: Introduction Taxpayer Bill of Rights are the group of 10 fundamental rights initiated by United…

Q: Which of the following is correct about the tax law and taxpayers' strategy in the gains and losses…

A: Both; II.) The amount of Section 1245 Deprecation recapture is not part of the capital gains and…

Q: An item that is considered a nondeductible item in taxable income is recognizing estimated bad debts…

A: Non deductible item in taxable income is an item which will not be considered for deduction while…

Q: No deductions shall be allowed where the transaction is between “related taxpayers” under Sec. 36(B)…

A: Solution Concept As per the provision of the Tax Code The interest expense in not allowed for…

Q: 4. Which of the following differences would result in future taxable amounts? A. revenues or gains…

A: Solution 4: Expenses or losses that are deductible before they are recognized in financial income…

Q: contingency that need not be disclosed in the financial statements

A: Contingency is the probable obligation or receivable that may arise in future which depends on the…

Q: . What is the possible treatment for tax purposes of a net operating loss? What is the proper…

A: Net operating loss: When the level of income is less than the expenses for a given or a considered…

Q: Describe the difference between the standard deduction and itemized deductions. How should a…

A: Lets understand the basics. In US taxation, there are two type of deduction specified. Tax payer can…

Q: The rules on holding period shall only apply where the taxpayer is an individual and the dealing…

A: Holding Period:-It is a period that helps in determining the taxing of capital gain or losses. A…

Q: (True/False) Private letter rulings only pertain to the specific taxpayer. (Applies only to the…

A: Private letter rulings is a document which is sent by internal revenue service to the taxpayer…

Q: Explain three main reasons expenses may not be deductible for income tax/corporation tax purposes.

A: Business expenses: These are costs you incur while operating your business. Expenses are recorded on…

Q: It is the exploitation by the taxpayer of legally permissible alternative tax rates or methods of…

A: Tax is referred as the financial charges which is imposed by government on an individual’s income or…

Q: Why might it be more advantageous for a taxpayer to demonstrate that they ... Why might it be more…

A: The correct answer for the above motioned question is given in the following steps.

Q: doctrine is applied to deny favorable tax consequences to a transaction that never actually occurred…

A: Substance over form doctrine: The substance over form doctrine is alike sham transaction analysis.…

Q: Which of the following statements is / are correct?

A: Refundable tax credits include earned income credit. Non refundable tax credits are those credits…

Q: There is no taxable income until such income is recognized. Taxable income is recognized when the…

A: Taxable income is those income on which tax would be levied. In other words, the income on which…

Q: entory methods from FIFO to LIFO: O Requires retrospective restatement. O Does not require…

A: Changing the inventory method from FIFO to LIFO is the change in the accounting policy. Preparation…

Q: Which is NOT true? a. Deductions partake the nature of an exemption b. Exemptions are strictly…

A: Tax is the mandatory payment for the taxpayer.

Q: Which is false? a. The estate tax is computed based on the net estate or taxable estate. b. The net…

A: The estate tax is computed after deducting the exemption value from the total value of the…

Q: Which is NOT true? a.Deductions partake the nature of an exemption b. Exemptions are strictly…

A: Tax deductions are defined as the deductions that are used to lower the tax liability of a person or…

Q: A deferred tax account is classified on the balance sheet as: A net noncurrent amount A net current…

A: Introduction: Balance sheet: All Assets and liabilities are shown in Balance sheet. It tells the net…

Q: Which of the following is accurate regarding a real estate foreclosure transaction? A  A…

A: The question is based on the concept and principle of income tax for real estate transactions.…

Q: Failure to furnish a completed copy of a prepared tax return no later than the time such return is…

A: Every Tax return filer has to submit a copy of the tax return after certification with signature to…

Q: The rules on holding period shall only apply where the taxpayer is an individual and the dealing…

A: The rules on holding period shall apply to every taxpayers and not only to the individual taxpayer…

Q: U.S. form 1040 or 1040EZ is the form for an individual tax retum. O True O False

A: Answer -  The IRS 1040 form of Income tax return is one of the official documents that U.S.…

Q: Which of the following accurately describes when a taxpayer may report capital gain/loss…

A: Capital Gain :— Sale or Transfer of Capital Assets on which Consideration is Involved resulting in a…

Q: The IRS does not have the authority to: a.Summon taxpayers to make them appear before the IRS.…

A: The IRS or Internal Revenue Service’s is the tax collection agency of the nation that administers…

Q: What is the statute of limitations for income tax returns

A: Given: The concept of a statute of limitations for the income tax returns.

Q: When accounting standards require recognition of an expense that is not permitted undertax laws, the…

A: Temporary differences incur when there is a difference between the tax base and the carrying amount…

Q: Which of the following statements is false?

A: Out of the given statements,  A realized gain that is never recognized results in the temporary…

Q: RUE OR FALSE? Tax assessments made by the BIR must be in writing containing the law and facts as…

A: Taxation- Taxation refers to the imposition of a tax on persons and other types of organizations, as…

Q: Will the existence of unused tax losses always lead to the recognition of a deferred tax assets?…

A: SOLUTION- DEFERRED TAX = IT REFERS TO EITHER A POSITIVE (ASSETS) OR NEGATIVE (LIABILITY) ENTRY ON…

Q: A taxpayer’s tax-exempt status justifies the non-keeping of books of accounts and other accounting…

A: Tax-exempt can be defined as the income free from taxation at the local, state, and federal levels.…

Q: True or False

A: Long-term capital gains (LTCG): The gain an individual or an entity gets by selling the investment…

Q: Which of the following results to a deferred tax liability? When the carrying amount of an asset is…

A: Solution: "None of the choices" results to a deferred tax liability. this is because When the…

Q: Statement I: An expense which is necessary but not ordinary, or ordinary but not necessary is…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Which of the following is a correct statement? O Tax avoidance includes failure to pay tax on…

A: Tax is the amount which the tax payer pays to the government when the income of an individual goes…

Q: Which of the following is a temporary difference that normally is recognized for accounting purposes…

A: Temporary difference is the difference between when the revenue and expenses are  reported for…

Q: TRUE OR FALSE The burden of proof to establish the deductibility of a particular expense item is on…

A: The burden of evidence refers to your obligation to prove the accuracy of your tax returns’ entries,…